The recent market selloff is making investors nervous — especially beginners. While no one wants to see the value of their stock portfolio reduce, it’s important for beginners to understand that stock investing is not a short-term game. In this article, we’ll find out how new investors can still make money from stock investing, despite the ongoing market turmoil.
The best way for new stock investors to make money
New investors should always focus on buying stocks at a bargain and holding them for the long term. This is one of the key rules of making money from the stock market that the world’s most successful investors reiterate over and over. As most high-growth stocks have witnessed extreme volatility lately, buying them right now could be a bit risky for investors with a low-risk appetite. Nonetheless, beginners can still buy reliable dividend stocks, which could help them get regular income, even in difficult economic times. Let’s look at two such reliable dividend stocks in Canada that I find worth considering for beginners, despite the ongoing market selloff.
Canadian Natural stock
Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) is a Calgary-based energy sector giant focused on crude oil and natural gas exploration and production, primarily in North America. It currently has a market cap of about $92.4 billion as this reliable stock trades at $79.19 per share with outstanding 47% year-to-date gains.
The ongoing solid growth trend in its financials supports its year-to-date stock gains. In the March quarter, Canadian Natural’s total revenue rose by around 62% YoY (year over year) to $10.7 million, beating analysts’ estimates of $9.5 billion. Consistently surging demand for energy products amid reopening economies and a higher price environment helped the company post an outstanding 178% YoY jump in its adjusted earnings to $2.86 per share in Q1.
In addition, CNQ stock has a decent dividend yield of around 3.8% at the moment. Canadian Natural’s strong balance sheet has allowed it to significantly increase its dividends in the last few years — making it one of the most attractive stocks for new investors right now.
Pembina Pipeline stock
Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another reliable Canadian energy company with a market cap of about $28 billion. Despite the recent broader market selloff, its stock trades with 31% gains in 2022 at $50.35 per share.
After posting a strong 39% jump in its total revenue in 2021, the company has made a strong start to the year by posting a 49% YoY increase in its first-quarter revenue, crushing analysts’ estimates by more than 30%. Similarly, its adjusted earnings in Q1 stood at $0.81 per share, reflecting a nearly 59% YoY improvement.
While Pembina Pipeline has been serving the North American energy market for nearly 65 years, it’s now also focusing on expanding business in the global market. This is one of the main reasons why I expect its financial growth to accelerate in the coming years. This reliable dividend stock currently offers an attractive dividend yield of 5.1%, which could help investors keep getting regular income.